Examples of recent questions relating to Intelligent Finance transfer of equity

• My mother passed away last March leaving a unencumbered property to me and my step brother in equal shared. Having continues to reside at the property, there was a provision in the will saying the housecould not be sold for 2 years following her death so he could reside there for a prescribed period. He now wants to remain in the premises beyond the specified period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a home loan in the traditional way to purchase my half from me?
• My fiance and myself have equal shares in a investment property. I am a top rate tax payer. Ideally I wish to do a transfer of equity into her name to mitigate tax on rental income. Assuming Intelligent Finance are happy with this the legal fees are not prohibitive. What are the implications when we sell? Would my GGT relief be lost.
• I jointly own a property in Rye , with a Intelligent Finance mortgage with my ex partner. Him and his new partner are going to buy me out. We had the go ahead from Intelligent Finance to replace my name with hers. The transfer of equity needs to be completed by a lawyer for Intelligent Finance (supposedly). In order to save fees can I do the Land Registry formalities?
• I am considering remortgaging my apartment in Friern Barnet does my lawyer have to be on the Intelligent Finance Solicitor panel. The conveyancing also involves a transfer of equity.
• When it comes to transfer of equity conveyancing involving a remortgage with Intelligent Finance should I be charged value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
• At what point do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my house in my name alone which is happening at the same time as a switching mortgage with Intelligent Finance?
• Do I need legal advice when doing a transfer of equity where the mortgage is to remain with Intelligent Finance?

Information that may be required from your conveyancing solicitor could ask about your Intelligent Finance Transfer of Equity

General Advice to read in in addition to the above Intelligent Finance transfer of equity Questions and Answers :

Tax and Legal

There are numerous potential tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the freeholder. If such restrictions are not strictly observed you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancing solicitor will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Intelligent Finance Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content on this webpage is for general information and only applies to England and Wales. It should not be regarded as advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.